Unaffordable Riccarton housing development

Labour is questioning whether homes proposed in a large soon-to-be-announced housing development on Christchurch Racing Club-owned land in Riccarton will be affordable.

Labour’s Associate Housing spokeswoman Poto Williams has been leaked information that the developer will be Ngai Tahu and the Government is expected to pass empowering legislation to enable the use of the land held by the Racing Club for almost 100 years.

“I’m told the Government will promise so-called affordable houses at $450,000.

“For many people that is not affordable. Repayments on a 15 year mortgage with a 20 per cent deposit would take 75 per cent of the wages of a household on the median income before-tax1.

“The National Government has allowed the Canterbury housing crisis to rage on for years, by failing to get the rebuild underway quickly enough.

“National’s sudden revelation that large scale developments are needed is welcomed. But with less than 1000 rebuilds completed four years after the last major quake you have to wonder how long it will take the Government to deliver on a large-scale development,” Poto Williams says.